Thursday, May 7, 2015

IRS Wastes $5.6 Billion On Bogus Obama Stimulus Tax Credits

You know what they say: One man's waste is another man's income redistribution
scheme...

(Washington Times) The IRS doled out more than $5 billion in potentially bogus
college aid payments under an Obama stimulus tax credit in 2012, according to a
new report Tuesday from the agency’s inspector general that said the
administration still doesn’t have a good handle on how to root out erroneous
claims.

More than 3.8 million students received more than $5.6 billion in questionable
tax credits, the audit found — more than half of those never filed their tuition
statement, while others were paid tax credits even though the schools they
attended weren’t acceptable institutions.

Still other students claimed the credit for more than four years.

"The IRS still does not have effective processes to identify erroneous claims
for education credits," said J. Russell George, Treasury Inspector General for
Tax Administration, who said he's repeatedly warned the IRS about the problem
but "many of the deficiencies TIGTA previously identified still exist."...